Different Perspectives on the Concept of Corporate Social Responsibility

When it comes to Corporate Social Responsibility, an organization should choose what it stands for wisely. Freidman and Carroll have different perspectives on the concept of CSR. Freidman argues that social responsibility in a company is all about the economic value and how much profit is being made. He believes that any money used for charitable activities that benefit the society is an inappropriate use of shareholders’ money as it does not generate any revenue directly.

He emphasizes on following the rules that are in place both legal and ethical even in the activities of maximizing profits (Pava & Krausz, 2009). Spending on society is a burden which drags a company behind. On the other hand, Carroll supports embracing CSR and believes a company has four responsibilities towards its stakeholders that is: economic, legal, ethical and humanitarian. This means an organization does not only think about itself and how to make its profits. It makes products that meet the expectations of its customers thus making a profit, follows the set legal laws of business, respects the beliefs of the involved society in their business practices and give back to the community as a gesture of goodwill (Carroll, 2015).

Carroll’s ideology is more favorable for an organization as it does not only focus on maximizing profit alone but also considers other stakeholders such as employees, customers and society as well as ensuring sustainability in the process (Shaw, 2009). The economic responsibility ensures that the company sustains itself and it also rewards the stakeholders and employees. It is the foundation of a company and determines its progress. The legal responsibility is also crucial as there are rules set to run activities which a company is expected to comply with. Fairness should always be observed. A company that abides by the rules gives its stakeholders and customers confidence making it easier for them to invest. As a result, the company markets itself and profit increases (Carroll & Shabana, 2009).

The ethical responsibility requires that a company’s practices should respect the beliefs, customs, and norms of the society involved. It also entails respecting what the customers and stakeholders believe in and observing their rights. This creates a healthy relationship and bond between the company and its stakeholders thus understanding their needs and delivering as per their expectations. The humanitarian responsibility entails giving back to the community as a gesture of goodwill. Most companies find it necessary to do activities that benefit the society as a way of appreciation for their support. It could be through gifts, engaging in community development or offering training services to the people. This creates a good brand name for the company and it ensures its continued growth.

References

Carroll, A. B. (2015). Corporate social responsibility: The centerpiece of competing and complementary frameworks. Organizational Dynamics, 44(2), 87-96.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105.
Carroll, A. B. (2008). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4), 39-48.
Lind green, A., & Swaen, V. (2010). Corporate social responsibility. International Journal of Management Reviews, 12(1), 1-7.
Pava, M. L., & Krausz, J. (2009). The association between corporate social-responsibility and financial performance: The paradox of social cost. Journal of business Ethics, 15(3), 321-357.
Shaw, W. H. (2009). Marxism, business ethics, and corporate social responsibility. Journal of Business Ethics, 84(4), 565-576.

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